Editorial - News of DAK closure puts another human face on decisions made in Raleigh

Published: Saturday, June 22, 2013 at 11:30 p.m.

Last Modified: Saturday, June 22, 2013 at 11:30 p.m.

Six hundred hard-working people will be out of a job by the end of September, a troubling reminder that while the Cape Fear region’s economy is improving, many businesses are still making deep cuts. Those 600 DAK employees had better hope they can find new work soon, because they won’t be able to count on much help from the state.

As of July 1, unemployment benefits for new applicants will be cut by one-third, and the state-funded benefits will be available for at most 20 weeks – potentially as little as 12 weeks, a factor dependent on the state’s overall unemployment rate. That doesn’t leave workers trained in one manufacturing field much time to look for new work, let alone update or retool their job skills.

Federally funded unemployment benefits don’t kick in until after the 26th week of joblessness. For many people that six-week gap could mean a trip to the welfare office, dipping into any reserve funds

Some may luck out and find new employment soon. But if recent trends hold up, many others will be out of work for far longer than 20 weeks. As of last month the average unemployed worker was jobless for more than 36 weeks, according to the federal Bureau of Labor Statistics.

In most cases, it is not for lack of trying. There are still more unemployed workers than available jobs, and when one takes into account that not every worker is suitable for every job, it makes the search that much more difficult. Many workers would benefit from retraining programs to help update and add to their set of job skills. But when you’re out of work without enough income to pay the bills, even the modest price of community college credits can be out of reach.

And not everyone has much in the way of savings to tide them over. As of 2010, more than one-third of U.S. households – 37 percent – had assets of less than $10,000, a marked increase from the 29.7 percent in that same category in 1995, when $10,000 went a little further. It doesn’t take long to eat up such a tiny nest egg.

Gov. Pat McCrory and the legislative leadership are right that the best remedy for unemployment is to get people back to work. In that regard, any assistance the state could provide in recruiting new business and help with job placement is welcome.

But in arguing that slashing jobless benefits will help recruit and retain businesses, many of the Honorables’ comments left the strong impression that they view anyone who is unemployed for more than a couple of weeks as lazy and probably not worth hiring. Tell that to those 600 DAK employees – people who get up every day, go to work and carry out their duties because that’s the work ethic they were taught, and it’s the example they set for their children.

We’ll soon see the impact of the drastic cuts in unemployment compensation. It remains to be seen whether McCrory and the Honorables will deliver on their promise to get jobless North Carolinians back to work. Commerce Secretary Sharon Decker says improvements to the state’s job-search website will allow for better matching of unemployed workers with available jobs. That would certainly be an improvement.

But if the goal is also to improve the state’s economy, that job placement help should include helping retrain workers for the skills they will need to get back into the workforce. Here is where those “public-private partnerships” touted by so many candidates could pay off.

Some businesses say they have job openings but can’t find qualified workers. What if those businesses partnered with the state to help find and train suitable candidates?

Businesses would fill critical vacancies. Unemployed workers would have jobs with a future. And the state would see increased tax revenue because those people are working.

<p>Six hundred hard-working people will be out of a job by the end of September, a troubling reminder that while the Cape Fear region's economy is improving, many businesses are still making deep cuts. Those 600 DAK employees had better hope they can find new work soon, because they won't be able to count on much help from the state.</p><p>As of July 1, unemployment benefits for new applicants will be cut by one-third, and the state-funded benefits will be available for at most 20 weeks – potentially as little as 12 weeks, a factor dependent on the state's overall unemployment rate. That doesn't leave workers trained in one manufacturing field much time to look for new work, let alone update or retool their job skills.</p><p>Federally funded unemployment benefits don't kick in until after the 26th week of joblessness. For many people that six-week gap could mean a trip to the welfare office, dipping into any reserve funds </p><p>Some may luck out and find new employment soon. But if recent trends hold up, many others will be out of work for far longer than 20 weeks. As of last month the average unemployed worker was jobless for more than 36 weeks, according to the federal Bureau of Labor Statistics.</p><p>In most cases, it is not for lack of trying. There are still more unemployed workers than available jobs, and when one takes into account that not every worker is suitable for every job, it makes the search that much more difficult. Many workers would benefit from retraining programs to help update and add to their set of job skills. But when you're out of work without enough income to pay the bills, even the modest price of community college credits can be out of reach.</p><p>And not everyone has much in the way of savings to tide them over. As of 2010, more than one-third of U.S. households – 37 percent – had assets of less than $10,000, a marked increase from the 29.7 percent in that same category in 1995, when $10,000 went a little further. It doesn't take long to eat up such a tiny nest egg.</p><p>Gov. Pat McCrory and the legislative leadership are right that the best remedy for unemployment is to get people back to work. In that regard, any assistance the state could provide in recruiting new business and help with job placement is welcome.</p><p>But in arguing that slashing jobless benefits will help recruit and retain businesses, many of the Honorables' comments left the strong impression that they view anyone who is unemployed for more than a couple of weeks as lazy and probably not worth hiring. Tell that to those 600 DAK employees – people who get up every day, go to work and carry out their duties because that's the work ethic they were taught, and it's the example they set for their children.</p><p>We'll soon see the impact of the drastic cuts in unemployment compensation. It remains to be seen whether McCrory and the Honorables will deliver on their promise to get jobless North Carolinians back to work. Commerce Secretary Sharon Decker says improvements to the state's job-search website will allow for better matching of unemployed workers with available jobs. That would certainly be an improvement.</p><p>But if the goal is also to improve the state's economy, that job placement help should include helping retrain workers for the skills they will need to get back into the workforce. Here is where those “public-private partnerships” touted by so many candidates could pay off.</p><p>Some businesses say they have job openings but can't find qualified workers. What if those businesses partnered with the state to help find and train suitable candidates?</p><p>Businesses would fill critical vacancies. Unemployed workers would have jobs with a future. And the state would see increased tax revenue because those people are working.</p><p>Everybody wins.</p>